Institutions mainly aim at making profits and obtain profits by providing goods or services; Non-operating units do not take profit as the main goal, but mainly undertake social welfare or public service functions.
First, the characteristics of institutions
Institutions are usually economic entities whose core goal is to obtain economic profits. These units are often responsible for their own profits and losses, have the status of independent legal persons, operate independently according to law, be responsible for their own profits and losses, develop themselves and be self-disciplined. They meet market demand and realize economic benefits by providing goods or services. The business activities of public institutions are regulated and restricted by the market economy and need to abide by relevant market rules and laws and regulations.
Second, the characteristics of non-operating units
Unlike public institutions, non-public institutions do not take profit as their main purpose. They are usually set up by the government or social organizations and mainly undertake social welfare or public service functions. The operating funds of these units mainly come from government grants and social donations. Their business activities do not focus on the pursuit of economic profits, but on the realization of social benefits and public interests. Non-operating units are strictly supervised by relevant laws, regulations and policies in the course of operation.
Three. Comparison between public institutions and non-public institutions
There are obvious differences between business units and non-business units in business objectives, sources of funds and business methods. Institutions pay attention to economic benefits and achieve profitability through market competition; Non-operating units pay more attention to social benefits and the provision of public services. But both of them play an important role in social development, complement each other and promote social progress.
To sum up:
There are significant differences between business units and non-business units in nature, purpose and mode of operation. Institutions take profit as the main goal and realize economic benefits through market competition; Non-operating units mainly undertake social welfare or public service functions and pay attention to the realization of social benefits. Both of them have their unique functions and values in social and economic development, and both promote social progress.
Legal basis:
Company Law of the People's Republic of China
Article 2 provides that:
The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law. The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Interim Regulations of People's Republic of China (PRC) Municipality on the Administration of Registration of State Institutions
Article 2 provides that:
The term "institution" as mentioned in these Regulations refers to a social service organization organized by state organs or other organizations with the purpose of social welfare and engaged in activities such as education, science and technology, culture and health. For-profit institutions established by public institutions according to law must carry out independent accounting and carry out registration management in accordance with the laws and regulations of relevant state companies, enterprises and other institutions.